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Different investment strategies
24 Aug 2021 (530 views)

Dear Sir,
Is it better to invest in Robo-adviser vs ETF or Reits to beat inflation
I am in my early fifties.

REPLY
Here are my views.

1.  Robo-adviser
I have not tried investing with robo adviser. However, I have heard feedback from some investors that their experience was not favorable. 

2. ETF
The ETF allows you to invest in a diversified fund of blue chip shares and pay a low management fee.
Unfortunately, the performace of the Singapore ETF has been disappointing in recent years. 
If you invest in an ETF in America at this time, you will be investing in stocks with high PE ratios. They may perform poorly in a market downturn.

3. REITS
REITs allow you to invest in a portfolio comprising of several properties. The yield on many REITS are at 3% or slightly higher. However, you face the risk that the rental income may drop and it will reduce the yield. If interest rate moves up, the capital value of properties may also drop, reducing the price of the REITS.
​​​​
The three strategies have their risks and benefits. You have to choose the strategy that works best for you.

I wish to add another strategy.

I prefer to invest in blue chip shares in China that are traded in Hong Kong. I can find several stocks of good companies with PE ratios below 10 times and dividend yield above 4%. You can buy a few of these stocks from Hong Kong at a discount of 30% ore more compared to the prices in Shanghai.

You can select a few of these stocks and invest in them for the long term. If the stock price drops, you can hold them for the long term and wait for their recovery. You will get an attractive dividend yield.

If the stock price moves up by 20% or more, you can take profit and invest the money in other stocks that have offer good value and have not moved up much.

I explain this strategy in my talk that is held regularly.  Click here.

Tan Kin Lian

Note - I am sharing my views for education purpose. I am not giving any investment advice. 


Different investment strategies
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Dear Sir,
Is it better to invest in Robo-adviser vs ETF or Reits to beat inflation
I am in my early fifties.

REPLY
Here are my views.

1.  Robo-adviser
I have not tried investing with robo adviser. However, I have heard feedback from some investors that their experience was not favorable. 

2. ETF
The ETF allows you to invest in a diversified fund of blue chip shares and pay a low management fee.
Unfortunately, the performace of the Singapore ETF has been disappointing in recent years. 
If you invest in an ETF in America at this time, you will be investing in stocks with high PE ratios. They may perform poorly in a market downturn.

3. REITS
REITs allow you to invest in a portfolio comprising of several properties. The yield on many REITS are at 3% or slightly higher. However, you face the risk that the rental income may drop and it will reduce the yield. If interest rate moves up, the capital value of properties may also drop, reducing the price of the REITS.
​​​​
The three strategies have their risks and benefits. You have to choose the strategy that works best for you.

I wish to add another strategy.

I prefer to invest in blue chip shares in China that are traded in Hong Kong. I can find several stocks of good companies with PE ratios below 10 times and dividend yield above 4%. You can buy a few of these stocks from Hong Kong at a discount of 30% ore more compared to the prices in Shanghai.

You can select a few of these stocks and invest in them for the long term. If the stock price drops, you can hold them for the long term and wait for their recovery. You will get an attractive dividend yield.

If the stock price moves up by 20% or more, you can take profit and invest the money in other stocks that have offer good value and have not moved up much.

I explain this strategy in my talk that is held regularly.  Click here.

Tan Kin Lian

Note - I am sharing my views for education purpose. I am not giving any investment advice.